India to be fastest-growing economy in 2018-19: IMF

The International Monetary Fund’s latest World Economic Outlook update has pegged India’s economic growth at 7.4 per cent in 2018 - the fastest growth in the world. Meanwhile, the Indian economy is projected to rise by 7.8 per cent in 2019

January 22, 2018

The IMF released the report, which factors in a variety of parameters and macroeconomic conditions, ahead of the annual meeting of the World Economic Forum

Emerging and developing Asia, accounting for over half of the world’s growth, will grow at around 6.5 per cent over 2018–19, broadly the same pace as in 2017

IMF’s projections come on the back of a firming up of global economic activity. Global output, according to IMF, is estimated to have grown by 3.7 per cent in 2017

The outlook report added that in 2018 and 2019 multilateral cooperation will remain vital for strengthening of the global economy as markets adapt to the latest trends

The International Monetary Fund’s latest World Economic Outlook update has pegged India’s economic growth at 7.4 per cent in 2018 – the fastest growth in the world. The update by the international monetary and trade organisation for the month of January 2018 also projected India’s economic growth in 2019 at 7.8 per cent. This is steady increase from estimated growth of 7.1 per cent and 6.7 per cent in 2016 and 2017, respectively. The report follows a considerable improvement in the Indian fiscal sector as well as a steady increase in domestic consumption.

The IMF released the report, which factors in a variety of parameters and macroeconomic conditions, on January 22nd ahead of the annual meeting of the World Economic Forum in Davos, Switzerland. The projections wil assert further confidence in the Government of India’s initiatives such as Make in India, Skill India, Digital India and Startup India that are aimed at augmenting indigenous manufacturing and innovation. These measures, along with continued policy and regulatory reforms as well as improved diplomacy, have attracted increasing foreign investor interest.

Meanwhile, IMF report said that emerging and developing Asia, which accounts for over half of the world’s economic growth, will grow at around 6.5 per cent over 2018-19 – broadly at the same pace as in 2017. Growth is expected to moderate gradually in China, while remaining remain broadly stable in the ASEAN-5 region – Indonesia, Malaysia, the Philippines, Singapore, and Thailand. In developing Europe, economic growth in 2018 and 2019 is projected to remain stronger than previously anticipated, along with that in Russia, Latin America, Middle East and North Africa.

IMF’s projections come on the back of a firming up of global economic activity. Global output, according to IMF, is estimated to have grown by 3.7 per cent in 2017, which is 0.1 percentage point faster than last projection and ½ percentage point higher than in 2016. IMF said that the pickup in growth has been broad based, with notable upside surprises in Europe and Asia. As a result, global growth forecasts for 2018 and 2019 have been revised upward by 0.2 percentage point to 3.9 per cent. IMF added that multilateral cooperation will remain vital for strengthening the global economy.

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